- USD / JPY consolidates the recent rebound from multi-month lows despite risk aversion.
- The yen recovers against the G10 currencies.
He USD/JPY it continued to rise during the American session and rose to 103.25, 55 pips above the nine-month lows it reached earlier at 102.70. It recovered sharply as stock prices on Wall Street reversed sharply lower.
The Dow Jones, the Nasdaq and the S & P500 are down more than 2% after starting the year in positive territory. The sharp reversal in stocks boosted the dollar across the board. The DXY erased the losses and rose again towards 90.00 after falling below 89.40, the lowest level in more than two years. The VIX (fear index) jumped to the highest level in almost two weeks.
USD / JPY bearish but …
From a technical perspective, the USD / JPY reversal could be positive for the USD as it rose again above 103.00. Still, the dollar needs to climb above 103.30 / 35 to gain support for a more robust recovery.
The long-term trend points to the downside. As long as USD / JPY remains unconsolidated below 103.00, the decline will remain limited.
Technical levels
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